Millions of workers have moved a tiny step closer to getting a pension from their employer.

Ministers have detailed plans to force companies to contribute to workers' nest eggs from 2012.

But the proposals have received a mixed reaction with critics claiming they amount to too little, too late and warning they could leave people in existing schemes worse off.

Yvette Cooper, Pensions Minister, says up to 14 million people get no pension contribution from their employer and around half of them are failing to save enough for their retirement.

She says: "The cost of doing nothing in the face of an ageing society is too great to ignore.

"Even during these difficult economic times, employers, industry and unions agree these reforms a r e v i t a l i n g i v i n g people the chance to save in a pension."

From 2012 large companies will be forced to enrol workers into a pension scheme and chip in at least 1% of their annual pay. This will rise to 2% in 2016 and 3% from 2017, but critics insist it should be much more.

Firms with fewer than 50 workers will not have to join the scheme until 2016 which means millions will not benefit until then.

Ministers claim the National Employment Savings Trust (NEST) will see an extra £10billion a year being saved by 2015.

The initiative was applauded by business and union leaders.

Katja Hall, of the CBI says: "We support moves to encourage more people to save for their retirement.

"The changes announced show that the Government has listened to businesses."

Brendan Barber, TUC general secretary, adds: "This is a major step forward in building a progressive pensions system based on the auto-enrolment of workers into pensions and compulsory employer contributions."

But the Lib Dems claimed the danger was many firms would cut existing contributions to the minimum required.

"How will people be better off if their employers cut the money they put into pensions?" Ros Altmann, a pensions expert and former government adviser, agrees the scheme may leave many people worse off.

She says most firms with "defined benefit" schemes based on workers' final salaries, chip in 15-20%.